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Hibor hits fresh 10-year high of 1.58 per cent on fears of liquidity crunch

The rise in bank funding costs comes as the city’s de facto central bank raised the base lending rate after the US Federal Reserve’s interest rate announcement, and also in anticipation of strong seasonal demand A gauge of Hong Kong’s bank funding costs, which hit a 10-year high, suggests liquidity in the banking sector will be squeezed rapidly and could last longer than expected.
One-month Hong Kong interbank offered rate (Hibor) rose to 1.58 per cent on Wednesday, its highest level since 2008. Similarly a number of banks have also raised their term deposit rates in tandem in recent months as their short-term borrowing costs rise and in ... (full story)